What is the Crowne Plaza licensee's responsibility regarding compliance with applicable law when submitting plans to IHG for review?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee acknowledges and agrees that: (a) IHG's review of Preliminary Plans, Final Plans, FF&E Specs, Life Safety systems or other materials, documents or items submitted to IHG for review and approval pursuant to this License (collectively "Licensee's Plans") is exclusively for determination of compliance with the Standards, the requirements of the Brand System and the terms of this License and not for compliance with all applicable law or adequacy or suitability for the purpose intended, (b) no approval of Licensee's Plans by IHG shall constitute, be deemed or construed in any way as, IHG's consent, approval, acknowledgment or recognition that Licensee's Plans comply with applicable law or are adequate or suitable for the purpose intended, (c) Licensee shall have the sole responsibility for compliance with applicable law and for the adequacy and suitability for the purpose intended and (d) nothing in this License, and no review and approval (or opportunity for review) by IHG of Licensee's Plans shall be deemed to create a duty on the part of IHG that could give rise to any cause of action by Licensee or any of its Affiliates, or any other person or entity against IHG or any of its Affiliates nor their respective officers, directors or employees, based on any alleged deficiency in the adequacy, suitability or legality of Licensee's Plans.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the licensee bears the sole responsibility for ensuring that all submitted plans comply with applicable laws and are adequate for their intended purpose. IHG's review of the licensee's plans, including preliminary plans, final plans, FF&E specifications, and life safety systems, is strictly for the purpose of determining compliance with the brand's standards, system requirements, and the terms of the license agreement. IHG's approval does not indicate that the plans meet legal requirements or are suitable for their intended use.
This means that while Crowne Plaza reviews plans to ensure brand consistency and adherence to their standards, the franchisee must independently verify and ensure that all plans comply with local, state, and federal laws. This includes, but is not limited to, building codes, accessibility requirements (such as ADA), and environmental regulations. The franchisee cannot rely on IHG's approval as a guarantee of legal compliance.
Crowne Plaza explicitly states that its review and approval of the licensee's plans does not create any duty on its part that could lead to legal action against IHG based on alleged deficiencies in the adequacy, suitability, or legality of the plans. Therefore, it is crucial for prospective Crowne Plaza franchisees to engage qualified professionals, such as architects and legal counsel, to ensure full compliance with all applicable laws and regulations during the planning and construction phases. This protects the franchisee from potential legal liabilities and ensures the project's viability.